FI Real Estate Fund One, LLC, (“the Fund”) is a privately held fund under SEC Rule 506 of Regulation D, focused on investing in commercial real estate. The Fund invests primarily in the Northeast U.S. within the medical office and industrial verticals.
FIRE Fund One is the first fund launched under the FIRE (Financially Independent Retired Early) Brand and is affiliated with FI Real Estate Capital Management, LLC, which acts as the property management arm of the FIRE Funds strategic offering.
The objective of Fund One is to provide an opportunity for investors to receive an extraordinary dividend yield in comparison to other asset classes, such as equities, while also participating in the potential for longer-term asset appreciation and leverage related benefits. Fund One seeks to:
Preserve Investor Capital
Focus on capital return driven by assets with healthy cash flow characteristics
Drive appreciation through value additive opportunities and practices
Maximize its debt/equity ratio, ensuring “lazy capital” doesn’t become a drag on returns
The Fund is focused on assets that generate higher than normal levels of cash flow, all other factors equal. Capital preservation is priority number one and strong cash flow supports that goal, enabling capital to be returned to shareholders while ensuring that assets remain solvent.
The Fund seeks deals where appreciation can be “forced”. Examples include: raising below market rents, outlaying capital expenditure to attract and retain quality tenants, and leasing up vacant space, to name a few.
Smaller sized deals, roughly in the $2-$10mn range, often prove to be too large for many individual investors, yet too small for professional money managers, thus creating an opportunity/inefficiency in the market.
Fund One seeks to capitalize on larger and longer-term trends. While the Great Recession created strong cash returns for a time in residential, that risk/reward gap has been mostly arbitraged. More recently, the C-19 pandemic has highlighted the resiliency and importance of medical office and industrial space while casting a shadow of doubt over office.
© 2022 FI Real Estate – Business & Consulting. All rights reserved.
